Fair Work Ombudsman
Citation: FWO-2022-03-16-blue-mist-penalty-media-release
At a glance
- Penalty
- $5,328
- Employees affected
- 1
- Awards cited
- MA000173
What happened
The Fair Work Ombudsman investigated Blue Mist Café in Bankstown, Sydney, after an international student from the Philippines requested assistance. A Fair Work Inspector issued a Compliance Notice in November 2020, requiring the café's operator, Blue Mist Entertainment Pty Ltd, to back-pay wages and penalty rates to the worker. The café was placed into liquidation, preventing the FWO from penalising the company directly. Diaa Mohamed, the former manager, was found to have failed to comply with the Compliance Notice.
What was decided
The Federal Circuit and Family Court imposed a penalty of $5,328 against Diaa Mohamed. The court found that a penalty was needed to deter Mr Mohamed and others from disregarding Compliance Notices. The worker remains unpaid. Judge Nicholas Manousaridis stated the penalty should signal to all employers that failing to comply with Compliance Notices will result in significant penalties.
What it means for employers
Employers must comply with Compliance Notices issued by the Fair Work Ombudsman. Failure to do so can result in court-imposed penalties, even if the business is liquidated. The Fair Work Ombudsman prioritises compliance in the fast food, restaurant, and café sectors.
What it means for employees
Employees who believe they are owed wages or entitlements should contact the Fair Work Ombudsman for free advice and assistance. The Fair Work Ombudsman provides interpreters and resources for small businesses and employees.
Every statement above is drawn from the published decision. Read the original here:
https://www.fairwork.gov.au/newsroom/media-releases/2022-media-releases/march-2022/20220316-blue-mist-penalty-media-releaseWant more cases like this?
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This summary was drafted by AI from the published decision and reviewed before publishing. It is general information, not legal advice. For your specific situation, speak to the Fair Work Ombudsman (13 13 94) or a qualified lawyer. About these summaries & corrections →